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Backward-bending of labor supply function and free riders

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  • Yoshino, Hisao
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    Abstract

    It seems like that backward- bending of labor supply function can be observed in Central Asian Countries such as Uzbekistan and Kazakhstan. People’s basic needs of life are satisfied and they do not increase labor supplies even if wage increases. It is possible to find some cases in which slowdowns increase, when a manager in a firm enforces penalties for workers have slowdowns. This phenomenon occurs because a worker prefers the position of equilibrium on the labor supply function always in the upper direction. This article explains the increase of free-riders by penalties and how to avoid them.

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    File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1141/1/ARRIDE_Discussion_No.350_yoshino.pdf
    File Function: First version, 2012
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    Bibliographic Info

    Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 350.

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    Date of creation: Mar 2012
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    Publication status: Published in IDE Discussion Paper. No. 350. 2012.3
    Handle: RePEc:jet:dpaper:dpaper350

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    Related research

    Keywords: Central Asia; Labor problems; Labor market; Backward- bending; Labor Supply Function; Free Riders;

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